Finance Minister Dr Abdul Hafeez Sheikh has convened a meeting of the Auction Supervisory Committee (ASC) on Friday (today) to finalise modalities for hiring international consultant to award 3G licences. The move is likely to generate Rs 79 billion estimated as non-tax revenue in the current fiscal year. This was stated by Secretary Information Farooq Ahmed Awan on Thursday during a meeting of the National Assembly's Standing Committee on IT.
The committee unanimously approved recommendations of sub-committee aimed at ensuring transparency in the process of awarding 3G licenses. It directed the Ministry to accelerate the auction process in the light of recommendations submitted by the sub-committee and approved by the main committee.
The Secretary IT said the Ministry was in favour of hiring international consultant to ensure transparency. The committee recommended that in view of the appointment of an international consultant to oversee 3G auction as directed by the ASC, the entire process already initiated in this regard stands redundant.
Once appointed, the international consultant would determine and review the auction process from scratch. Pakistan Telecommunication Authority (PTA) was directed to follow the best international practices in awarding 3G contracts with an objective of maximising revenue, efficiency and competitiveness in the best national interest.
"PTA must observe the performance and financial viability of existing mobile phone companies before considering them to qualify for the bidding process." The Ministry of IT was recommended to ensure that infrastructure sharing is mandatory for the license holders to avoid environment pollution and encourage economies of scale. PTA was told to avoid awarding more than one block to one operator as this would be anti-competitive. Alternatively, PTA must impose the condition to launch 4G technology on two blocks brought by any one operator.
The PTA should make criteria for appointment of international consultant transparent as well as complete the hiring process at the earliest so that the auction process of 3G could be completed without further delay. The telecom regulator was also recommended to ensure that some portion of profit earned by licensees could be invested back in Pakistan for manufacturing telecommunication equipment, which would not only contribute to revenue generation but become a source of employment as well. The auction advisory committee or PTA should oversee the process of awarding 3G license for effective delivery and accountability.
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